Cyprotex upbeat despite first loss in seven years

CHESHIRE biotech company Cyprotex has reported its first operating loss for seven years – £710,000 – in a reversal of last year’s profit of £610,000.

In its final results for the year ended in December, the Macclesfield-based company revealed strong revenue growth, up 18.4% to £11.57m (2013: £9.77m).

The outcome was affected by a goodwill impairment relating to its US operations of £3.04m. Underlying EBITDA earnings were £610,000 (2013: £1.54m).

Despite falling into loss the company provided an upbeat assessment of its performance, including the acquisition and integration of CeeTox.

The group also expanded into the BioHub at the former Astra Zeneca Alderley Park site, and transferred a number of assays and staff  to accommodate further growth in revenues.

There was also significant investment in several major new products and services.  These included a new high throughput facility in Watertown, Massachusetts, a new suite of drug transporter assays, a new high resolution QTof mass spectrometer for improved metabolite identification services and new toxicology analysis equipment in Macclesfield.

Chairman Ian Johnson said 2014 had been a year of considerable investment for the company.

“In addition to the CeeTox acquisition which brought access to a range of new assays and customers, particularly in the cosmetic and personal care space, we have invested heavily in several significant new technical projects which considerably widens the company’s potential service offerings to its current and to new customers,” he said.

“ However, the CeeTox acquisition experienced operational issues before it ran effectively and the new technical projects took longer to validate than we anticipated.
 
“As a result, whilst revenues grew by 18% we recorded our first operating loss in seven years, which was in line with guidance given at the time of our trading update in November.
 
“The acquisitions and investments are, however, critical for our future growth and we have every expectation that these will contribute to significant revenue growth and a return to profitability in 2015.”